Davids Magic Stores has an operating profit of $200,000. Interest expense for the year was $32,000; preferred dividends paid were $27,500; and common dividends paid were $42,000. The tax was $51,000. Davids Magic Stores has 22,000 shares of common stock outstanding.

a. Calculate the EPS and the common dividends per share for Davids Magic Stores. (Round the final answers to 2 decimal places.)

EPS	$
Common dividends per share	$

b. What is the payout ratio? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Payout ratio %

c. What was the increase in retained earnings for the year?

Increase in retained earnings $

d. If Davids share price is $70.00 what is its price-earnings ratio (P/E)? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price earning ratio times